Do your client payments trip you up when you’re trying to log them in to Quickbooks?
Especially the following month, when you’re trying to match the deposits on your bank statement to your invoice payments … but the amounts never seem to match?
Here’s an example of what I mean:
Let’s say you receive a check from a client – let’s make it fun and say you received $100 from Luke Skywalker for repairing his lightsaber. 😉
Then, later in the afternoon, Darth Vader drops off $200 and Obi Wan Kenobi writes you a check for $300.
And the next day, when you go to the bank, you deposit all three checks for a total deposit of $600.
Now, when you get your bank statement the following month, the only line item for those 3 checks will be “$600 deposit”; there won’t be any indication or detail of the three separate checks. So how do you match and reconcile each check?
(And guess what? Even if you are paid via Stripe or Paypal instead of paper checks, it’s pretty much the same process – a delayed deposit and payments bundled together)
So – why does that matter?
Because:
(1) If you want to know + track exactly when your clients paid you, and
(2) If you want to know exactly what was in that $600 deposit, even when you’re looking at it 6 months later and forgot which checks you cashed that day,
Then you’ll need to make sure you use an extra step in Quickbooks, using an account called “Undeposited Funds”.
I promise, It’s not as hard as it may sound. 😉 Just check out this helpful link – it’ll walk you through the whole process, step by step. Then you won’t have any trouble tracking client payments and matching your deposits!
And of course, if you have any questions about this process, or just want someone to take care of this financial stuff for you – just reach out! I’d love to help.
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